How and where to buy NSC: Scheme offers 6.8 pct interest rate + income tax benefits; just check out your friendly neighbourhood post office

ZeeBiz WebTeam | Jul 16, 2020, 03:57 PM IST

People want to make money, but above all, they do not want to lose any of it. Safety and gains can go hand in hand very much. There are many places where investors can make money and here we explore one of the better ones. National Savings Certificate (NSC) - a Government of India scheme - is a popular investment option among small and medium investors. The scheme can be purchased from any post office branch. NSC also offers tax benefits to investors. Know how to buy this this scheme! Pc Credit: PTI

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This scheme can be opened by a minimum investment of Rs 1,000 with multiples of Rs 100, thereafter. There is no maximum limit on this scheme. NSC currently, gives an interest rate of 6.8 per cent compounded annually but payable at the time of maturity. Pic Credit: PTI

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NSC maturity amount calculation

This Small Savings Scheme gets matured in 5 years. As per the information available on the India Post website, under the existing rates, if you have invested Rs 1,000 over a period of 5 years, the amount you will get on maturity will be Rs 1389.49. Pic Credit: Reuters

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See important features of NSC scheme:

NSC can be purchased by a single adult; Joint A Account (Maximum 3 adults); Joint B Account (Maximum 3 adults); minor above 10 years of age; an adult on behalf of a minor; a guardian on behalf of a person of unsound mind. Pic Credit: Reuters

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NSC is being issued in the shape of Passbook w.e.f. 01.07.2016. Deposits qualify for tax rebate under Sec. 80C of IT Act. Pic Credit: PTI

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The interest accruing annually but deemed to be reinvested under Section 80C of IT Act. Note that in case of NSC VIII, transfer of certificates from one person to another can be done only once from date of issue to date of maturity. Pic Credit: PTI

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​At the time of transfer of Certificates from one person to another, old certificates will not be discharged. Name of old holder shall be rounded and name of new holder shall be written on the old certificate and on the purchase application (in case of non CBS Post offices) under dated signatures of the authorised Postmaster along with his designation stamp and date stamp of Post office. Pic Credit: PTI